The best working capital loans will have a combination of low rates, easy documentation requirements, and fast funding speeds. Loan proceeds should have flexible usage applicable to a variety of business purposes, with limited restrictions. Since the best financing option will depend on your specific business circumstances, we’ve selected lenders with varying qualification requirements and loan types, such as term loans, credit lines, and invoice financing.
Here are our picks for the best small business working capital loans:
- Bluevine: Best overall for established businesses seeking flexible short-term capital
- QuickBridge: Best for an easy application and approval process
- National Funding: Best for customer service and custom financing options
- SBG Funding: Best for same-day and tailored funding options
- Lendio: Best broker for multiple loan types and options
- U.S. Bank Member FDIC : Best for secured and unsecured loan options
- Clarify Capital: Best broker for short-term business loans
- Creditfy: Best broker for large business credit lines
- Funding Circle: Best for long-term business loans
- American Express: Best for businesses with low revenue
Get the Best Business Financing with Expert Guidance from SBG Funding |
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Best Working Capital Loans at a Glance
Maximum Loan Amount | Estimated Starting | Maximum Repayment Term | Total Est. Time from Application to Funding | Required Annual Revenue | Minimum Credit Score | |
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 | $250,000 | 6.2% | 1 year | 1 to 2 days | $120,000 | 625 |
 | $500,000 | Varies | 18 months | 1 to 2 days | $250,000 | 600 |
 | $500,000 | Varies | 18 months | As little as 24 hours | $250,000 | 600 |
 | Varies | As fast as same-day | $250,000 | 500 | ||
 | $5 million | Varies | 30 years | 1 to 3 days | $48,000 to $120,000 | 500 |
 | $250,000 | Varies | 7 years | As fast as same-day | $100,000 | Varies |
 | $5 million | 6% | 1 to 3 days | $120,000 | ||
 | $2.5 million | 6.50% | 3 years | As little as 24 hours | $100,000 | 600 |
 | $500,000 | Varies | 7 years | As fast as 48 hours | $50,000 | 660 |
 | Varies | Varies | 2 years | 1 to 4 days | $36,000 | 660 |
Bluevine: Best Overall for Established Businesses Seeking Flexible Short-term Capital
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Rates and Terms | |
Application Speed | 5 minutes |
Approval Speed | As fast as 5 minutes |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $250,000 |
Starting Interest Rate | 6.2% |
Estimated APR | 6.2% to 78% |
Repayment Term | 26 weeks or 12 months |
Repayment Schedule | Weekly and monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 625 |
Time in Business | 1 year |
Annual Revenue | $120,000 |
Why We Like Bluevine
Bluevine is our leading provider for the best small business working capital loans. It offers a line of credit product with one of the lowest rates on our list, fast approval and funding speeds, and the flexibility to draw funds as needed. For these reasons, we also selected it as one of the best small business lines of credit.
Compared to other lenders, it offers competitive rates and terms that allow businesses of all industries to partake in flexible financing opportunities. Notably, limited fees are involved with facilitating a loan, which is ideal for businesses with limited resources and credit history that need access to short-term financing.
You’ll need a business bank account to qualify, and Bluevine offers financing in most states—with the exception of Nevada, North Dakota, and South Dakota. It also has a list of ineligible industries, which include businesses involved with gambling, illegal or controlled substances, auto dealerships, and firearms. General partnerships and sole proprietorships are also ineligible for financing.
With a quick application and approval timeline, funding can be obtained rather quickly. You can apply online from the Bluevine website and get a decision in as fast as 5 minutes.
QuickBridge: Best for an Easy Application and Approval Process
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Rates and Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $500,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | Up to 18 months |
Repayment Schedule | Daily and weekly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months (4 months business bank statements required) |
Annual Revenue | $250,000 |
Why We Like QuickBridge
QuickBridge offers a simplified loan application process with minimal documentation requirements. As a result, you won’t have to provide nearly as much paperwork, which might otherwise normally include tax returns, profit and loss statements, balance sheets, bank statements, and other financial statements. This can be beneficial if you need quick access to funds or don’t have all of your documentation ready to go.
The lender also offers various loan products that can provide your business with flexible working capital, including short-term, bridge, and emergency loans. Also, it made our list of the leading easy business loans due to its simplicity and accessible qualification requirements for a wide variety of small businesses.
Notably, it also offers a quick approval process, usually within just a few days. Applications can be completed online, where a funding specialist will help guide you through the rest of the process and discuss financing options. To apply, you can visit the QuickBridge website.
National Funding: Best for Customer Service and Custom Financing Options
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Rates and Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $5,000 to $500,000 |
Starting Interest Rate | Factor rates as low as 1.11x |
Estimated APR | Varies |
Repayment Term | Up to 18 months |
Repayment Schedule | Daily and weekly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months (4 months business bank statements required) |
Annual Revenue | $250,000 |
Why We Like National Funding
National Funding places a large emphasis on delivering a high level of personalized customer service, a fact that helped it land a spot in our roundup of the top unsecured business loans. The majority of its loans are retained in-house, and applications are reviewed on a case-by-case basis to maximize approval odds. You’ll do best with this provider if your business has strong finances and credit. With that said, it can work with startups and businesses with lower credit scores and limited business history.
Notably, it also grants an early payment discount of up to 7% on the remaining balance if you pay off the loan within 100 days of getting funded. National Funding does not require collateral to be pledged for a loan.
Like QuickBridge, it offers a streamlined application and approval process, with limited documentation necessary to apply. To learn more, you can visit National Funding’s website or speak to one of its funding specialists.
SBG Funding: Best for Same-day and Tailored Funding Options
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Rates and Terms | |
Application Speed | 10 minutes |
Approval Speed | As fast as same day |
Funding Speed | As fast as same day |
Loan Amount |
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Starting Interest Rate |
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Estimated APR | Varies |
Repayment Term |
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Repayment Schedule |
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Financing Type | Term loan, line of credit, and invoice financing |
Qualifications | |
Credit Score | 500 |
Time in Business | 6 months |
Annual Revenue | $250,000 |
Why We Like SBG Funding
If you’re looking for customized loan terms tailored to your specific business circumstances and needs, you should strongly consider SBG Funding, which also boasts a high approval rate of 85%. With that said, meeting the minimum requirements does not guarantee approval.
Businesses that are weak in any area of their loan application will likely require other compensating factors to get funding. For example, businesses with bad credit may need exceptionally strong finances or proof of substantial assets to have a better chance of getting approved; well-qualified businesses can get up to $5 million in funding in as little as 24 to 48 hours, a feature that helped SBG Funding earn a place in our list of the top-recommended fast business loans.
The lender offers a variety of financing solutions for a wide range of businesses, including those with limited credit or operating history. Its working capital loans include term loans, a line of credit, and invoice financing. The exact rates and terms you get will vary depending on what loan you apply for and your business qualifications.
To apply, you can complete a loan application online. Doing so will not negatively impact your credit score, so it can be a good place to start if you have concerns about how likely you are to get approved.
Lendio: Best Broker for Multiple Loan Types & Options
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Rates and Terms | |
Application Speed | 10 to 15 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | $1,000 to $5 million |
Starting Interest Rate | Varies |
Estimated APR | Varies |
Repayment Term | Up to 30 years |
Repayment Schedule | Varies |
Financing Type | Line of credit, SBA loans, term loans, MCAs, and equipment financing |
Qualifications | |
Credit Score | Varies; some lenders accept as low as 500 |
Time in Business | Varies; typically 6 months to 2 years |
Annual Revenue | Varies; typically ranges from $48,000 to $120,000 |
Why We Like Lendio
Lendio is a business loan broker with over 75 lenders in its network. It also offers a wide range of loan products, including credit lines, SBA loans, and other term loans. With this many options and such a large network of providers, your odds of getting approved and finding a low interest rate loan can be greatly improved.
When you work with Lendio, you’ll be paired with a funding specialist who can provide personalized recommendations based on your business needs and qualifications. You’ll be guided through your options, and the specialist can also serve to confirm the best type of loan to help you meet your business goals.
While working with a broker can give you more options and improve your approval odds, one downside is that you may not know the exact qualification requirements or loan terms until after you apply. This is typically because your loan specialist must first conduct an assessment of your business qualifications before determining which of its lending partners can issue approval for the financing you’re seeking. The benefit, however, is that you can save time and money from having to apply separately to multiple lenders on your own.
Other products offered by Lendio include accounts receivable financing, commercial mortgage loans, startup loans, business acquisition loans, and business credit cards. Lendio can also help connect you with other business services, such as credit repair, bookkeeping, and legal assistance. To learn more or to apply, visit the Lendio website. There are no application fees, and submitting an application will not negatively impact your credit score.
U.S. Bank: Best for Secured and Unsecured Loan Options
Rates and Terms | |
Application Speed | 10 to 15 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $250,000 |
Starting Interest Rate (rates expires October 15, 2024) |
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Estimated APR | Varies |
Repayment Term |
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Repayment Schedule | Monthly |
Financing Type | Business Loan and Business Line of Credit with Secured and Unsecured options available |
Qualifications | |
Credit Score | Varies |
Time in Business | 2 years |
Annual Revenue | $100,000 |
Why We Like U.S. Bank
U.S. bank offers a variety of financing options for small businesses, such as its Quick Loans. These include general purpose business loans, equipment loans, and vehicle loans. With competitive starting rates and low fees, the provider offers both secured and unsecured working capital opportunities to a wide variety of industries.
The application process is simple, and, if approved, you can receive funds quickly. Notably, there is no origination fee required, and you can reach out to a representative to learn more about what financing options you qualify for. If you enroll in the provider’s autopay feature using a U.S. Bank checking account, you may be eligible for rate discounts on your loan; see our U.S. Bank business checking review if you don’t have an account.
While applications are reviewed on a case-by-case basis, chances of approval are favored towards established businesses with strong credit scores and high annual revenue. To apply, you can visit the U.S. Bank website and submit an application or visit a branch nearest you.
Clarify Capital: Best Broker for Short-term Business Loans
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Rates and Terms | |
Application Speed | 2 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 to 48 hours |
Loan Amount | Up to $5 million |
Starting Interest Rate | 5% and up |
Estimated APR | Varies; typically 6% and up |
Repayment Term | Varies; 6 months to 2 years for non-SBA loans |
Repayment Schedule | Varies |
Financing Type | Term loan, line of credit, equipment financing, SBA loans, invoice factoring, and merchant cash advance (MCA) |
Qualifications | |
Credit Score | Varies; typically 550 (500 for SBA, term loans & MCAs) |
Time in Business | 6 months |
Annual Revenue | $120,000 |
Why We Like Clarify Capital
Clarify Capital is another business loan broker on our list. It also has a large network of over 75 lenders, with a wide range of loan types. If you’re looking for a short-term business loan, Clarify Capital can match you with a variety of lending solutions best suited to your specific business needs. It offers the highest short-term maximum loan amount in this guide, which can be useful for large business purchases that can be paid off quickly.
Just like the other brokers we’ve mentioned, it will pair you with a loan specialist to best match you with a loan suited to your needs. It can provide a high level of service, demonstrated by its 5-star rating on Trustpilot, and can also issue funding quickly, a feature that landed it a spot in our roundup of the best same-day business loans.
To learn more or to submit an application, you can visit the Clarify Capital website. Applications can be completed in under two minutes at no cost and with no impact on your credit score.
Creditfy: Best Broker for Large Business Credit Lines
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Rates and Terms | |
Application Speed | 5 to 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 24 hours |
Loan Amount | Up to $2.5 million |
Starting Interest Rate | 6.49% |
Estimated APR | 6.50% and up |
Repayment Term | 6 months to 3 years |
Repayment Schedule | Monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Revenue | $100,000 |
Why We Like Creditfy
Creditfy offers various lending products with competitive rates, easy qualification requirements, and fast funding speeds. Its line of credit, in particular, offers high funding amounts, notably the highest on our list. With a loan approval rate of 90%, qualification criteria are inclusive of a variety of businesses with various business needs.
As with most other brokers, working with Creditfy means one of its loan specialists will work with you to find the lender best suited for your needs. You’ll be sure to work with an experienced individual, as Creditfy requires all of its representatives to have a minimum of two years of industry experience.
If a line of credit is not the right fit, you can also check out Creditfy’s other loan products, including equipment financing, invoice financing, and Small Business Administration (SBA) loans. To apply, you can visit the Creditfy website.
Funding Circle: Best for Long-term Business Loans
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Rates and Terms | |
Application Speed | 5 to 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | As fast as 48 hours |
Loan Amount | $25,000 to $500,000 |
Starting Interest Rate | 7.49% to 15.22% |
Estimated APR | Varies |
Repayment Term | 6 months to 7 years |
Repayment Schedule | Biweekly and monthly |
Financing Type | Term loan |
Qualifications | |
Credit Score | 660 |
Time in Business | 2 years |
Annual Revenue | $50,000 |
Why We Like Funding Circle
If you’re not looking for an SBA loan, Funding Circle can offer one of the longest repayment terms on our list. It has term loans that can be funded within one to two days after applying. SBA loans, by comparison, typically take 45 to 90 days to fund.
Loans are offered in all 50 states, and in addition to the qualification requirements listed above, you must have no bankruptcies in the last seven years and not operate in any of the following industries:
- Speculative real estate
- Nonprofit entities
- Weapons manufacturers
- Gambling
- Marijuana dispensaries
Funding Circle charges a one-time origination fee for its loans that can range from 4.49% to 10.49%. Late payment fees are also assessed at 5% of the missed payment amount. Otherwise, there are no application, prepayment, monthly maintenance, administration, servicing, or account management fees.
Business owners must allow Funding Circle to place a lien on business assets as collateral for the loan. Real estate liens are not accepted. A personal guarantee is also required of any individuals who have an ownership interest of 20% or more in the company. If you’re interested in applying or learning more, check out the Funding Circle website for contact information and a link to an online application.
American Express: Best for Businesses With Low Revenue
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Rates and Terms | |
Application Speed | 5 to 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | 1 to 3 days |
Loan Amount | Varies |
Starting Interest Rate |
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Estimated APR | Varies |
Repayment Term | 6, 12, 18, or 24 months |
Repayment Schedule | Monthly |
Financing Type | Line of credit |
Qualifications | |
Credit Score | 660 |
Time in Business | 12 months |
Annual Revenue | $36,000 |
Why We Like American Express
For businesses unable to meet high revenue requirements, American Express offers the lowest revenue requirement in our guide. Notably, its line of credit charges a monthly fee rather than a traditional interest rate. Monthly fees vary based on the length of the loan repayment period and the strength of your business qualifications.
Other fees that may be incurred include late fees which can range from $10 to $100 depending on the outstanding balance listed on the monthly statement. Balances between $35 and $500 will incur a late fee of $10, while the maximum late fee of $100 will apply if your loan balance exceeds $5,000. American Express credit lines do not carry any prepayment penalties.
You can complete an online application in just a matter of minutes. If approved, funding from any draw you take on the line of credit can be deposited into your bank account within a few days.
How We Chose the Best Working Capital Loans
The best working capital loans were selected based on the following criteria:
- Types of loans offered
- Interest rates, fees, and estimated APRs
- Loan terms
- Repayment terms available
- Qualification requirements
- Ease of application
- Documentation requirements
- Application, approval, and funding speeds
- Customer reviews and ratings
Types of Working Capital Loans
You may see lenders advertising different types of loans as working capital loans. To help you identify the type of loan best suited for your needs, here is a summary of common loan products you may see:
- Term loan: This provides a single lump sum of funds and generally has a repayment period between six months and 10 years. It is a good option if you need to finance a large purchase or do not have a recurring need for funds. Check out our article on the best fast business loans for some options.
- Small business line of credit: A small business line of credit is a revolving credit line that allows you to draw funds on an as-needed basis up to your credit limit and repay the balance over time. This flexibility makes it useful for covering recurring expenses or emergencies.
- Invoice financing: If you have issued invoices to customers but are still awaiting payment, you can get an advance on those funds with invoice factoring.
- Merchant cash advance: A merchant cash advance is an expensive form of financing that allows you to get a cash advance in exchange for a percentage of your credit card sales. This should generally be regarded as a last resort given its costs.
- Revenue-based financing: This allows your monthly payments to go up or down depending on your company’s revenue. It can be a good option for your business if you’re concerned about cash flow issues and have predictable sources of revenue. Head to our article describing how revenue-based financing works.
When shopping around for a working capital loan, there are numerous lenders and loan offerings available. When determining what type of working capital loan is best for your business, there are a few factors to keep in mind when comparing options.
- Loan type: Whether it be a term loan, line of credit, or other specialized financing, figure out how you plan to use the funds for your business.
- Budget: Consider what you can afford for a monthly payment.
- Term of the loan: Determine whether the funds you need can be repaid in the short or long term.
- Qualification criteria: Some lenders have credit scores and annual revenue requirements. Ensure you meet these criteria before you apply.
- Collateral: Depending on the loan type and lender, consider collateral requirements and what you can offer.
Although working capital loans can be used to cover a wide range of business expenses, you still need to meet the qualification requirements of a lender to get approved. Here are some alternatives if you’re having trouble getting a working capital loan:
- Startup business loans: These types of loans can be easier to get if you have been in business for less than two years or have lower revenue. Some startup loans require collateral to be pledged as security for the loan, while others allow for penalty-free access to retirement funds. Check out our list of different types of startup loans.
- Business credit cards: Similar to a line of credit, a business credit card can help finance as-needed expenses without having to request a draw. The balance can be repaid over time, and some cards may even offer rewards beneficial to your business. To find one that fits your needs, see our list of the best small business credit cards.
- Personal loan for business purposes: If your business finances or credit are presenting challenges when it comes to getting approved for a business loan, a personal loan may be an option. You’ll be personally liable for making the payments if your business fails, so you’ll need to consider that as a possible risk. Head to our recommendations for the best personal loans for business funding.
- Loans from friends and family: If you’re still having trouble getting financing, loans from friends and family can be one way to get around the traditional requirements of a bank. This option can also be less expensive than traditional methods of financing. If you’re unsure how to pursue this option, see our guide on raising money from friends and family to fund your business.
Frequently Asked Questions (FAQs)
You can get a working capital loan within 24 to 48 hours. However, this will depend on the lender and type of loan so it could take up to two weeks or more. If you need to get a loan quickly, you can review our list of the best fast business loans.
Yes. Depending on the lender, you can get a working capital loan with credit scores as low as 500. For some loan types, a credit score may not even be required. For example, invoice financing does not typically have a credit score requirement as repayment of the loan is more dependent on the credit of the companies that owe you the outstanding invoice amounts. If you have bad credit and need financing, check out our roundup of the best business loans for bad credit.
You can get a working capital loan from traditional banks, credit unions, online lenders, or loan brokers (see our list of the best business loan brokers for options). Since working capital loans are used to cover many types of daily operational expenses, they can include various forms of financing, including term loans, lines of credit, invoice financing, and purchase order (PO) financing.
Bottom Line
The best small business working capital loans offer financing solutions that fit your business needs. The list we’ve provided considers favorable loan amounts, rates and terms, and qualification criteria. Be sure to work with a lender that offers lending products suitable to your needs and budget.
